In general, the following steps are involved in trading in an inherited vehicle with an outstanding loan balance:
1. Gather the necessary documents, including the vehicle title, registration, and loan payoff statement.
2. Contact the lender and discuss the terms of the loan payoff.
3. Get pre-approved for a new car loan, if necessary.
4. Take the vehicle to the dealership and negotiate a trade-in value.
5. Sign the necessary paperwork and complete the trade-in.
It is important to note that the amount of the outstanding loan balance will be deducted from the trade-in value of the vehicle, so the owner may need to come up with additional cash or financing in order to complete the trade-in.
Additionally, some lenders may require a co-signer or additional documentation in order to approve a loan for an inherited vehicle, so it is important to check with the lender beforehand.
